1/18/2008

The Changing cost of making decisions

There are lots of costs in decision making. Most focus on the costs of information, but another important factor is the amount of time that we have to make decisions. Today's WSJ references an example of this last point and the obvious consequence of making it more costly to make decisions:

I have referred several times before in this space to Tony Blair's observation, after resigning last year, that the pressure of 24/7 electronic media has drastically cut the time available to make judgments, and so the quality of decisions has declined. The missed call in New Hampshire is the first sharp demonstration of this truth for journalism itself. Odds are that nothing will be learned from this because no one has time to think about it.

Of course, there are other costs of making decisions that have been declining. For example, it is easier to quickly get a hold of the people who you need to talk to (cell phones) and quickly search files and databases (computers).